Demand on the short end of the yield curve rise and T-Bills market turnover is expected to increase during the week.
T-Bill rates stayed flat at 8.20 percent, 10.30 percent and 10.80 percent for the 91 day, 181 day and 364 day auctions respectively.
Investors showed preference for the shorter-dated 91 and 182-day papers due to uncertainty in the interest rate environment. The higher subscription rate can be attributed to improved liquidity in the market, demonstrated by a net liquidity injection of 42.2 billion shillings from 0.1 billion shillings the previous week.
Bond turnover closed at 4.04 billion shillings, 264 percent higher from the previous session, on 158 deals compared to 82 previously due to increased foreign participation at 40 percent.
Equities turnover slowed significantly at week’s open, by 75 percent from last week’s’ close, with benchmarks sliding by an average 0.19 percent.
According to Cytonn Investments weekly report, the slow trend this week with NSE 20, NASI and NSE 25 losing 0.1 percent, 0.4 percent and 1.5 percent, respectively, taking their YTD performance to 14.2 percent, 13.7 percent and 13.1 percent, respectively.
Local investors edged out the consistent dominance of foreigner investors. Activity diversified across the Banking, Telco, Insurance and Investment sectors.
Buying interest continued on Standard Chartered Bank Kenya (NSE: SCBK). Also accumulated by foreign investors was Centum Investments Plc (NSE: ICDC) while foreign positions continued exiting Safaricom Ltd (NSE: SCOM).
Overall, foreigners were net buyers trading at 41.6 percent on Monday.
The slowdown in the trading activity was due to several factors;
